Lakeland, FL – Administrative leadership at the City of Lakeland (the City) and Lakeland Regional Health (LRH) announced today that they have reached an agreement on a proposed sixth amendment to the Lease and Transfer Agreement between the two entities.

Following deliberations by the Lakeland City Commission during the FY 2015 Budget process, LRH’s annual lease payment was capped at $12.9 million for two years. The City and LRH agreed to conduct negotiations to explore long-term alternatives to the payment terms of the current Lease and Transfer Agreement. The proposed amendment is subject to approval by the Lakeland City Commission and the Lakeland Regional Health Board of Directors.

The proposed amendment is for a term of 25 years, which adds an additional seven years to the current Lease and Transfer Agreement that was set to expire on October 1, 2033. The amendment provides a lump sum of $15,000,000 to be paid to the City by LRH on October 1, 2015. Additionally, annual lease payments will be made in the fiscal year ending September 30, 2016 through the fiscal year ending September 30, 2040.

The lease payment for the first year of the proposed amendment will be $13,254,750 and increases by 2.75% per year through the duration of the agreement. Lease payments will be made in equal quarterly payments, beginning on October 1, 2015.

In fiscal year beginning October 1, 2036, the City and LRH will enter into negotiations for a 25-year extension of the proposed Lease and Transfer Agreement. At any time during the lease negotiation period, but no later than October 1, 2037, the City may notify LRH that it intends to sell the hospital. LRH has the opportunity to purchase the hospital at fair market value as determined by a nationally recognized health care appraisal firm mutually agreed to by the City and LRH. If a purchase agreement is reached, a credit against the purchase price for all rent and payments made since inception of the lease on October 1, 1986 would be applied.

Doug Thomas, Lakeland City Manager, said, “Our administration is keenly focused on finding innovative solutions to provide the very best services possible to the citizens of the City of Lakeland. The proposed amendment is a win-win for our community. The lump sum payment provides the City with the opportunity to invest in our future and appropriately plan for a successor lease in 2037. Quarterly lease payments will enable both the City and LRH to better forecast and develop budgets based on known income and expenses.” He added, “We appreciate the strong partnership we have with LRH and believe the fruition of our negotiations respects desired outcomes envisioned in the original Lease and Transfer Agreement and provides stability for both parties over the next 25 years.”

Elaine Thompson, PhD, FACHE, President and CEO of Lakeland Regional Health said of the arrangement, “We appreciate all of the time, hard work and earnest discussions held with City administration on this matter. The predictability of lease and additional payments as provided by the proposed lease amendment positions our not-for-profit organization to make the financial investments necessary to improve patient safety and experience, while delivering nationally recognized, essential healthcare services to all patients, regardless of their ability to pay, at our Medical Center.”

About the City of Lakeland

The City of Lakeland was incorporated January 1885 and has grown to become one of the largest inland communities in Florida. With a current population over 100,000 Lakeland continues to grow. It has been designated a Standard Metropolitan Statistical Area by the U.S. Census Bureau for over 30 years. With tourist attractions and gulf beaches only an hour away, Lakeland continues to capitalize on its ideal central Florida location along the I-4 corridor. The City of Lakeland owns and operates Lakeland Electric, a full service municipal utility servicing over 120,000 customers with some of the most economically priced electricity in the state of Florida. Lakeland Electric is the third largest publicly owned utility in Florida and it was one of the first to offer power in the Sunshine State over 110 years ago. To learn more about the City of Lakeland, please visit www.lakelandgov.net.

About Lakeland Regional Health

Lakeland Regional Health, a not-for-profit, community-based organization serving Polk County and adjacent areas, provides a wide range of healthcare services at its Medical Center, Cancer Center and ambulatory care campuses. As an 851-bed, comprehensive tertiary referral hospital, the Lakeland Regional Health Medical Center operates a Level II Trauma Center, a Level II Neonatal Intensive Care Unit and the state’s busiest single site Emergency Department. It handles over 1,300 trauma visits annually and holds accreditation as a Primary Stroke Center. Lakeland Regional Health is transforming the future of healthcare by offering patients the highest quality of care with the lowest possible cost through the use of innovation, technology and evidence-based best practices. For more information about these facilities and services, go to www.myLRH.org.

On Friday July 25, 2015 Officer Carlos Cortes & Officer Mike Kellner received the MADD Florida Recognition of Excellence Award for their Individual DUI Enforcement efforts. Both of these officers use their passion, enthusiasm and dedication to save lives by locating and arresting impaired drivers.

Save the date! On Saturday, August 22 at 7 PM officers with the Lakeland Police Department will take on alumni Tampa Bay Buccaneers players in a game of basketball. The game will take place in the Lakeland Senior High School gymnasium.

Admission: $10 - Adults, $5 - Students and Children under 12 are free.

LAKELAND, FL (July 20, 2015) - The City of Lakeland will host a town hall meeting on Tuesday, July 28th at 6 p.m. so citizens can learn more about municipal governance models including strong mayor and city manager forms of government. Mike McGrath, Chief Information Officer with the National Civic League will give a nonpartisan overview of the various local government models. The meeting will be held in the City Commission Chambers located on the 3rd floor of City Hall at 228 S. Massachusetts Avenue.

Theodore Roosevelt, Frederick Law Olmsted, Louis Brandeis and other leading municipal reformers founded the National Civic League in the late nineteenth century; the league has been instrumental in efforts to make local governments more open, accountable and effective. Mayor Howard Wiggs said, “We have a great deal of discussion taking place in our community about various governance models and this is an excellent opportunity for our citizens to hear about the issue so they can be informed and engaged in the process.”

The National Civic League is a 120-year old nonpartisan, nonprofit organization based in Denver, Colorado. The League focuses on public participation and civic action. It depends on groups and individuals across the country that promote community engagement and problem solving approaches to build better governments.

As chief communications officer at the National Civic League, Mike McGrath heads the organization’s publication program, edits the 102-year-old National Civic Review and other NCL publications. He recently served as research and writer for the Fiscal Sustainability Case Investigations Project, a joint effort of NCL and the University of Southern California’s Price School of Public Policy. He has a master’s degree in journalism is from the University of California, Berkeley’s Graduate School of Journalism.